SBI slashes home, auto loan rates

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The move comes a day after the Reserve Bank of India (RBI) reduced the statutory liquidity ratio (SLR) - the proportion of liabilities that banks have to invest in government securities - by 100 bps to 23 per cent.

Other public sector bank heads told Business Standard they were evaluating the scope for rate cuts and their asset liability committees would take a call in the near future.

SBI slashes home, auto loan rates

That could lead to some cuts from other private sectors players in the category.

"The difference between SBI and other major players is only 25 basis points in the Rs 30 lakh category - not a very substantial one. But, in other categories where the difference is higher, other players may have to cut rates soon," said the official.

SBI's base rate is 10 per cent, the lowest among public sector banks. The bank has a home loan portfolio of Rs 85,000 crore.